ThaiBev's vision 2020 aims for big boost from Asean

Vichate Tantiwanich, senior vice president for corporate affairs, said that ThaiBev’s vision for 2020 aims to make the group a sustainable leader in Asean in terms of sales and market share.

He said the company has strong interest in building beverage factories in border provinces or in special economic zones as well as in neighbouring countries, where the company has enjoyed good sales of its beverages.

ThaiBev currently operates three brewery plants for its Chang beer, as well as 10 factories for non-alcoholic beverages, and 18 distillery factories for spirit products. The company employs more than 23,000 people.

"Asean will make the largest contribution to our international business by 2020," he said.

Vichate said that as part of its 2020 vision to become a total beverage company, ThaiBev would also increase the ratio of non-alcoholic beverages from 20 per cent at present to 50 per cent over the period. The sales contribution from overseas markets will also increase from the current 4 per cent to 50 per cent by 2020.

"We are also targeting to double our total sales revenue by 2020," said Vichate.

ThaiBev posted Bt160 billion in total sales last year.

Vichate said the company has divided its 2020 vision into two phases.

In the first phase, from 2015 and 2017, the company will focus on the arrangement of flagship products to be launched in particular markets in Asean. There will be different penetration strategies for individual markets. In the second phase, from 2018 to 2020, the company wants to see its beverage products available in all single markets in Asean.

"We are increasing our presence as a ‘powerhouse’ in non-alcoholic beverages. We are getting ready to penetrate the markets with a strong product portfolio both in alcoholic and non-alcoholic beverages. We are also looking to add beverage products with potential, such as wine and mineral water, to our portfolio," said Vichate.

He said ThaiBev has a strong logistics network. Together with Serm Suk, which was acquired by the company in 2011, ThaiBev has currently distributed its beverages to more than 400,000 points of sale throughout the Kingdom. Serm Suk alone serves about 250,000 points of sales, especially traditional retail shops and eatery outlets.

ThaiBev, in 2013, acquired a 28.6-per-cent stake as the largest shareholder in Fraser & Neave (F&N), which is a leader in soft-drink markets in Singapore and Malaysia.

Vichate said that the company will actively penetrate the beverage markets in Singapore and Malaysia via F&N, which has the strongest logistics networks in the countries.

Vichate said that ThaiBev in 2006 also acquired Inver House Distillers Ltd in Scotland and they will oversee the sales and distribution of single malt whiskies in the European market. The company, however, will focus on the distribution of Chang beer and other spirit brands in Asean. The company has already exported 15 per cent of Chang beer from its brewery plants in Thailand, especially to the Asean market.

He added that ThaiBev also exported its Oishi bottled green-tea products from Thailand to Cambodia, Laos, Myanmar, and Malaysia. The company will launch its green-tea beverage in Singapore this year.

"Our beverage products currently account for 15 per cent of the overall beverage market in Asean. We want to raise significantly the penetration of our beverage products in Asean in the future," said Vichate.